Generally, insurance agents complete a replacement cost estimator to determine how much money rebuilding your home would cost. However, the calculations have been done incorrectly! Most insurance companies were estimating the cost of building a new home. However, due to the current nature of home construction, home building costs could vary dramatically from rebuilding a home after an insured loss.When a new subdivision is being built, the developer realizes some economies of scale. Contractors can work their way down the street working on one house after another. If one house isn’t ready, they can move on to the one next door. When an insurance company is rebuilding a home, it is similar to building a custom home. Construction delays are routine while one contractor waits for another to complete his job. These delays could come out of YOUR pocket, so be sure to ask questions about the replacement cost of your home, and don't just accept the initial building cost.